Payment of Overtime Allowance in the revised pay to the employees of Defence Industrial Establishments governed by Factories Act,1948

Subject: Payment of Overtime Allowance in the revised pay to the employees of Defence Industrial Establishments governed by Factories Act,1948.

Consequent upon revision of pay structure as per the VI CPC recommendations, the matter regarding payment of OTA, as per revised pay to the employees of the Defence Industrial Establishments under Factories Act,1948 has been considered in consultation with the Ministry of Labour & Employment and DOP&T. That Ministry have clarified that OTA is a statutory provision and it would be admissible to the employees covered under the statutory provision of the Factories Act,1948 on the basis of revised wages with effect from the date the wages were revised.

2. OTA on the basis of revised wages after implementation of VI CPC recommendations, is subject to the conditions stipulated in this Ministry’s O.M No.14(1)/97/D(Civ-II) dated 1st July 1998.

3. This issues with the concurrence of Defence (Finance/AG/PB)vide their I.D No.133/AG/PB dated 18th April 2011 and after consultation with Ministry of Labour & Employment vide O.M.No.Z-16025/75/2009-ISH-II dated 14-01-2011.